The EC’s decision to label Booking.com as a gatekeeper carries significant implications, particularly for the hospitality industry
Jun 7, 2024
The European Commission’s decision to designate Booking.com as a gatekeeper has significant implications, particularly for the hospitality industry. The move is expected to promote more competitive and transparent pricing, benefiting both travelers and hoteliers.
Key takeaways
- For travelers, this change promises greater access to competitive pricing and exclusive deals. With increased competition, consumers can expect better deals and more choices when booking accommodations;
- For hoteliers, the decision allows them to be more competitive in their distribution channels and offer unique promotions. This enables hotels to connect with the right guests, drive direct bookings, and increase guest loyalty and revenue;
- Overall, this will allow hoteliers fairer access to consumers without incurring high commission fees from online travel agencies (OTAs), thereby improving profitability.
- It remains uncertain how Booking.com will respond to this ruling. Some OTAs have historically penalized hotels that do not maintain price parity by ranking their properties lower in search results.
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